All Forum Posts by: Melissa Hartvigsen

I am shocked that they would be so cheap on attorney fees when faced with a $20,000 bill.  Most attorneys will take a 30 or 60 minute consultation at no cost. 

I have personally used the following landlord tenant attorneys (though they specialize in residential landlord tenant issues which fall under ORS ch 90.  I believe commercial rental rules fall under a different ORS. I am sure they can give you a referral if it isn't something they cover.) 

Mark Passannante of Broer & Passannante
broerandpassannante.com

Warren Allen, their landlord tenant attorney team is up to eight or ten attorneys now:
https://warrenallen.com/landlords-rights/

In the event that you need additional recommendations, I try contacting Portland Area Rental Owners Assocation https://www.portlandarearoa.com/
and asking for a list.

Best regards, 
Melissa

Hi Ren,

I post my mid-term rentals on Furnished Finder, and Airbnb (30 minimum setting for bookings). In addition, there are Facebook groups for travel nurses where you can post your housing. You have to be invited and approved for the group.

I also asked each of my previous nurses which company placed them in my area, then asked for the recruiter's contact information.  I contacted the recruiter directly and provided them a flyer for my property so they can include it when placing future travel nurses in my area.

If you have multiple units (usually there is a minimum of 4 or 5), then the hospital is usually willing to share your information with their inbound travel staff.

Best wishes,

Melissa

We have the same provision in Oregon.  We require that all tenants make 3 times the rent for our properties. When evaluating tenants who receive Section 8 or a VASH voucher, we require that the tenant makes 3 times the rent based on the portion they will owe as calculated by the housing authority. This may require you to take the extra step of contacting the issuing authority to get those details.
Example: $3,200 market rent for the house. The housing authority says the tenant will owe $1,000 each month, and they will cover the remaining $2,200 of rent. Then the tenant should have an income of $3,000.

Quote from @Jordan Morris:

Quote from @Melissa Hartvigsen:

It is possible you could be paying income tax on rental income received in the US and where you reside. 

Your post didn't say whether or not you are a US Citizen. If you are not, there would also be the Foreign Investment in Real Property Tax Act that would have taxes due on the sale.

You may want to check with a CPA, and explain your specific situation. Then, once you know what tax implications are, I would go about your cash flow calculations to see if it makes sense.

Melissa

These are very good points to take into conseration early on.

I am based in the UK. We have some kind of tax treaty between the US and UK, meaning we can file a Foreign Tax Credit application to avoid double taxation. I would need to look into this.

Also, and I don't know if this is a system you use in the U.S., but if I would own properties and rent them for short or long rentals, I would register two separate companies and two separate bank accounts for these activities and do business with myself between these two companies. This will help to mitigate legal risks and lawsuits, which can potentially destroy your investments.

For example, I register company 1 as REMS (Real Estate Management Services). This company doesn't own the properties but leases them from company 2, which I register as, say, REIP (Real Estate Investment Portfolio). My company 2, REIP, would lease the properties to company 1, the management services. REIP would then invoice the management company every month. And you have actual contracts made between the two companies. All paperwork has to be made as if you have two completely separate companies that do business with each other. This includes income and salaries.

You also keep all accounting completely separate (this is important). You sign any agreements, ads, rentals in the management company's name only - not in your investment company's name. So, if you get a very sue-happy and aggressive tenant, they would sue the management company which doesn't retain any assets but your investment portfolio would remain protected. I would personally register the investment company perhaps even in a different country, in a different jurisdiction. It may also help to reduce your taxes. In the UK, for example, we have base tax deductions for a company. Each company would qualify for these deductions (and tax returns would need to be filed separately for each), so if I have two companies I qualify for double deductions...

I am not a real estate expert in anyway, but I hope this structure may perhaps help some of you with your property portfolios and to protect your assets.

Here is some more information on the FIRPTA tax related to sales directly from the IRS:
https://www.irs.gov/individuals/international-taxpayers/firpta-withholding

I am not a legal expert and cannot speak to how the structure you proposed having of separate companies for your investment and property manager will protect your liability from a lawsuit. In my state, Oregon, we have some of the strictest laws against landlords in the county. I have seen management companies be sued along with owners, and both parties have been found to have fault in some cases.  Maybe researching which states are the most "landlord" friendly will help you in that decision.  Also, I would consider adding an "umbrella policy" for insurance to help shoulder the cost of liability in the event of a lawsuit. My policy for my investments only costs a few hundred dollars per year.

Best wishes for your investment endeavor!

Hi Jordan,

Yes, you can purchase and manage properties form abroad. I have some clients who are based outside of the US and they have additional tax implications now that they are overseas. It is possible you could be paying income tax on rental income received in the US and where you reside. 

Your post didn't say whether or not you are a US Citizen. If you are not, there would also be the Foreign Investment in Real Property Tax Act that would have taxes due on the sale.

You may want to check with a CPA, and explain your specific situation. Then, once you know what tax implications are, I would go about your cash flow calculations to see if it makes sense.

Melissa

Hi Hayden,

I joined three years ago, but only started being active recently, so I can relate!

We also have a similar path. I am local to Portland and have traded my original condo purchases for other investment properties in Oregon.  Congratulations on getting off to a good start, and already having a rental in your portfolio.  

I have a ton of local contacts to help with your in case you need them (contractors, plumbers, electricians, property managers).  Feel free to reach out.

Cheers,
Melissa

Hi Angela,

I would start by contacting the building/development services department at your local municipality.  They will have all the specifics regarding permitting requirements including your question about a separate water heater or if you split utilities.

I have a house with an ADU in my rental portfolio (in Oregon). The house has a separate electric meter for each, but the water and sewer service is on one account. I opted to bill the water and sewer based on percentage of square feet. In my case the house pays 70% of the bill and the ADU pays 30% of the bill.

Best of luck to you!
Melissa

The mortgage stays in both names. The wife should explore options with her lender to "re-cast" the loan (which would allow her to keep terms if she qualifies on her own), or refinance the loan.

Hello Nick,

Congrats on planning for your first house hack!  I built my rental portfolio by house hacking, and later trading up to bigger properties.   I recommend you take the following steps:

1. Find out the going rate for a bedroom rental in your area. Look at places like Facebook Market Place and Craigslist. If there is a range, I would use the lower end of that range to be safe. For example if bedrooms rent for $700 to $900 I would use $700/room to run my numbers.
2. Use a mortgage calculator (Zillow and Redfin have them built-in) on properties that you like using the down payment that you have planned for.
3. Then, see what you payments would look like after renting out a room or rooms to someone else. (In my market house hackers are paying a portion toward the mortgage, but it is less than what their rent is).
4. If the numbers make sense to you, then I would find a good loan officer and start the pre-approval process for a loan, and interview a realtor.

I hope this gets you off to a good start.

Cheers,
Melissa

Hello Benson!

Short term rentals in Portland fall under Portland City Code (PCC) 33.207. 

I think commercial/mixed use zones still require the permit, but don't need the neighbor notification component. You should start by confirming with
The Bureau of Development Services in Portland:
Web: https://www.portland.gov/bds/astr-permits

Cheers,
Melissa